Published: 2015
Key Benefits:
Article 01. DEPARTMENT OF REVENUE
Sec. 43.05.010. Duties of commissioner.
The commissioner of revenue shall
(1) exercise general supervision and direct the activities of the Department of Revenue;
(2) supervise the fiscal affairs and responsibilities of the department;
(3) prescribe uniform rules for investigations and hearings;
(4) keep a record of all departmental proceedings, record and file all bonds, and assume custody of returns, reports, papers, and documents of the department;
(5) adopt a seal and affix it to each order, process, or certificate issued by the commissioner;
(6) keep a record of each order, process, and certificate issued by the commissioner, and keep the record open to public inspection at all reasonable times;
(7) hold hearings and investigations necessary for the administration of state tax and revenue laws;
(8) except as provided in AS 43.05.405 - 43.05.499 and in AS 44.64.030, hear and determine appeals of a matter within the jurisdiction of the Department of Revenue and enter orders on the appeals that are final unless reversed or modified by the courts;
(9) issue subpoenas to require the attendance of witnesses and the production of necessary books, papers, documents, correspondence, and other things;
(10) order the taking of depositions before a person competent to administer oaths;
(11) administer oaths and take acknowledgments;
(12) request the attorney general for rulings on the interpretation of the tax and revenue laws administered by the department;
(13) call upon the attorney general to institute actions for recovery of unpaid taxes, fees, excises, additions to tax, penalties, and interest;
(14) issue warrants for the collection of unpaid tax penalties and interest and take all steps necessary and proper to enforce full and complete compliance with the tax, license, excise, and other revenue laws of the state;
(15) report to the legislature before February 15 of each year the total amount of contributions reported and the total amount of credit claimed during the previous calendar year under AS 43.20.014 , AS 43.55.019, AS 43.56.018 , AS 43.65.018 , AS 43.75.018 , and AS 43.77.045 ;
(16) consult with the commissioner of natural resources on negotiation of contracts and development of terms for inclusion in proposed contracts associated with a North Slope natural gas project;
(17) direct the disposition of revenue received from gas delivered to the state under AS 43.55.014 (b) by entering into agreements with the commissioner of natural resources related to the management of the custody and disposition of gas delivered to the state under AS 43.55.014(b).
Sec. 43.05.020. Collection agencies.
The commissioner may employ a collection agency outside the state to assist in the collection of revenue owed to the state. The commissioner may pay for these services by entering into contingent fee agreements the commissioner considers reasonable, or by the payment of amounts out of the proper appropriation for the department the commissioner considers reasonable.
Sec. 43.05.025. Audit agents.
The commissioner may employ agents outside the state to assist in the audit of books and records located outside the state. Agents employed under this section are subject to the restrictions of AS 43.05.230.
Sec. 43.05.030. Branch offices.
The department may establish branch offices essential for the efficient administration of its duties.
Sec. 43.05.040. Inspection of records or premises and issuance of subpoenas.
(a) The department may examine the books, papers, records, or memoranda of any person to ascertain the correctness of a return filed or to determine whether a tax is due, or in an investigation or inspection in connection with tax matters. The records and the premises where a business is conducted shall be open at all reasonable times for official inspection, and the department may subpoena any person to appear and produce books, records, papers, or memoranda bearing upon tax matters and to give testimony or answer interrogatories under oath respecting tax matters. The department may administer oaths to persons who are so subpoenaed. A subpoena issued under this section may compel attendance of a witness or production of a document or thing, located either inside or outside the state, to the maximum extent permitted by law.
(b) A subpoena may be served by the commissioner of public safety or a peace officer designated by the commissioner of public safety, by a person designated by the Department of Revenue, or as otherwise provided by law. A subpoena may also be served by registered or certified mail for delivery restricted only to the person subpoenaed. The return delivery receipt must be addressed so that the receipt is returned to the department.
(c) If a person who is subpoenaed neglects or refuses to obey the subpoena issued as provided in this section, the department may report the fact to the superior court or the appropriate court of another jurisdiction, and may seek an order from the court compelling obedience to the subpoena. The court, to the maximum extent permitted by law, may compel obedience to the subpoena to the same extent as witnesses may be compelled to obey the subpoenas of the court.
Sec. 43.05.050. Return by department upon failure to make return or making false or fraudulent return.
If a person fails to file a return at the time prescribed by law or by regulation, or makes, wilfully or otherwise, a false or fraudulent return, the department shall make the return from the information it obtains. A return made by the department is prima facie good and sufficient for all legal purposes.
Sec. 43.05.060. Agreements with department respecting liability.
The department may enter into an agreement with a person relating to the liability of the person, or of a person or estate the person represents, for a tax, license fee, or excise tax for a period ending before the date of the agreement. If the agreement is approved by the attorney general, the agreement is final and conclusive and, except upon a showing of fraud or malfeasance, or misrepresentation of a material fact, the case may not be reopened as to the matters agreed upon or the agreement modified. In a suit or proceeding relating to the tax liability of the taxpayer the agreement may not be annulled, modified, set aside, or disregarded.
Sec. 43.05.070. Compromise of tax or penalty.
(a) If in the opinion of the department there is doubt as to the liability of the taxpayer for or the collectibility of a tax, license fee, or excise tax, the department, with the approval of the attorney general, may compromise the tax.
(b) The department, with the approval of the attorney general, may, for cause shown, compromise a penalty accruing under the state tax, license, or excise tax laws.
Sec. 43.05.075. Concealing or falsifying evidence.
A person may not knowingly, in connection with a compromise or offer of a compromise under AS 43.05.070 or in connection with a closing agreement or offer to enter a closing agreement under AS 43.05.060,
(1) conceal from an officer or employee of the state property belonging to the estate of the taxpayer or other person liable for the tax; or
(2) receive, destroy, mutilate, or falsify a book, document, or record or make a false statement under oath relating to the estate or the financial condition of the taxpayer or other person liable for the tax.
Sec. 43.05.080. Adoption of regulations.
The department shall adopt and publish regulations necessary for the enforcement of the tax, license, or excise tax laws administered by it. The department shall prepare and distribute all forms necessary or useful in the administration of tax, license, and excise tax laws.
Sec. 43.05.085. List of contributions.
The commissioner shall prepare and furnish to the Alaska Public Offices Commission by July 1 of each year a list containing the total amount of contributions received by each candidate and group for which a credit was received by an individual under AS 43.20.013 (a). The commissioner shall also mail a copy of the list to each of the candidates and groups which were recipients of those credited contributions. The list becomes public information under AS 40.25.110 - 40.25.120 on its delivery to the Alaska Public Offices Commission.
Sec. 43.05.090. Preparation and publication of statistics.
The department shall prepare and annually publish statistics of the revenues derived under the tax laws administered by it.
Sec. 43.05.095. Indirect expenditure report.
(a) The commissioner shall, not later than July 1 before the first regular session of each legislature, submit a report to the chair of the finance committee of each house of the legislature and to the legislative finance division that states, for each indirect expenditure made by the state,
(1) the name of the indirect expenditure;
(2) a brief description of the indirect expenditure;
(3) the statutory authority for the indirect expenditure;
(4) the date the statute authorizing the indirect expenditure is to be repealed, if applicable;
(5) the intent of the legislature in enacting the statute authorizing the indirect expenditure;
(6) the public purpose served by the indirect expenditure;
(7) the estimated annual effect on revenue of the indirect expenditure for the previous five fiscal years, excluding the fiscal year immediately preceding the date the report is due;
(8) the estimated cost to administer the indirect expenditure, if applicable;
(9) the number of beneficiaries of the indirect expenditure.
(b) For purposes of (a) of this section, federal tax credits adopted under AS 43.20.021 shall be reported in the aggregate.
(c) A department, agency, or public corporation of the state shall, upon the request of the commissioner, provide the records, reports, data analysis, or other information necessary for the commissioner to complete the report required by this section. The commissioner may enter into a confidentiality agreement if necessary to obtain information or a record required to prepare the report under this section.
(d) In this section, "indirect expenditure" means an express provision of state law that results in foregone revenue for the state by providing
(1) a tax credit or other credit;
(2) an exemption, but does not include federal tax exemptions adopted by reference in AS 43.20.021 ;
(3) a discount;
(4) a deduction, but does not include costs incurred in the ordinary course of business that are deducted in the calculation of a tax under this title or in the calculation of a royalty or net profit share payment for a lease issued under AS 38;
(5) a differential allowance.
Sec. 43.05.100. Designation of depositories and deposit of money.
(a) [Repealed, Sec. 3 ch 149 SLA 1978].
(b) The department may designate banks in the state as depositaries of tax revenues and may deposit tax revenues in these banks.
Sec. 43.05.110. Property in possession of deceased employee.
The personal representative of a deceased employee of the department who has possession or control of a tax list, record, return, paper, document, or book or money collected shall deliver it to the department.
Sec. 43.05.120. Concealing property or evidence. [Repealed, Sec. 38 ch 168 SLA 1990].
Repealed or Renumbered
Sec. 43.05.130. Penalty.
A person who, by conduct not described in AS 43.05.290 , violates a provision of AS 43.05.010 - 43.05.130 or a regulation adopted under those provisions is subject to a civil penalty of not more than $1,000 for each violation.